PL First Cut – Safari Industries | 1QFY24

PL First Cut – Safari Industries | 1QFY24 – Jinesh Joshi – Research Analyst

Safari Industries | 1QFY24 First Cut | Beat all over – Outperformance continues! | BUY

✳️Top-line increased 45.5% YoY to Rs4,267mn (PLe Rs3,416mn; CE Rs3,504mn) as against Rs2,932mn/Rs3,027mn in 1QFY23/4QFY23 respectively.

✳️Gross profit increased 70.8% YoY to Rs1,925mn (PLe Rs1,469mn) with a margin of 45.1% (PLe 43.0%) as compared to a margin of 38.4%/47.9% in 1QFY23/4QFY23 respectively.

✳️EBITDA increased 89.5% YoY to Rs790mn (PLe Rs581mn; CE Rs631mn) with a margin of 18.5% (PLe 17.0%) as against 14.2% in 1QFY23 and 19.3% in 4QFY23. Pertinent to highlight that Safari’s EBITDA margin of 18.5% was higher than VIP (12.7%).

✳️PAT increased by 87.8% YoY to Rs499mn (PLe Rs374mn; CE Rs403mn) with a margin of 11.7% (PLe 11.0%) as compared to a margin of 9.1%/12.6% in 1QFY23/4QFY23.

✳️We retain BUY on the stock with a TP of Rs3,202 (under revision; likely to be revised upwards as earnings upgrade is on the cards). The stock currently trades at 48x/40x our FY24E/FY25E EPS.